Stake Solana with Kiln - enterprise-grade staking
What is Solana?
Solana is a public and high-throughput layer-1 blockchain platform with smart contract functionality. Its native cryptocurrency is SOL. This open-source project was launched in 2017 and is currently run by the Solana Foundation based in Geneva. Solana is often compared to Ethereum, but while Ethereum has the first mover advantage, Solana has strong distinct advantages over it in terms of transaction speed and costs.
Is Solana a Proof-of-Stake blockchain?
The Solana network uses an iteration of the Proof-of-Stake (PoS) consensus mechanism (often abbreviated to PoS) called Delegated-Proof-of-Stake (dPoS). This network also incorporates an innovative Proof-of-History (PoH) timing mechanism that is implemented prior to, and facilitates, its Proof-of-Stake (PoS) protocol structure. Proof-of-History (PoH) is a sequence of computation that can provide a way to cryptographically verify the passage of time between two events. Discover more info in the Solana Whitepaper.
How is Solana Delegated Proof-of-Stake implemented?
Anyone can delegate some SOL tokens to a validator (or “vote account”) that participates to the consensus of the Solana chain. A vote account cannot be selected as a leader if no SOL are delegated to it. The more stake assigned to the validator, the more often it is chosen to write new transactions, and therefore the more it earns rewards.
What is staking?
In a Proof-of-Stake blockchain, staking consists of locking native tokens to earn the right to secure a chain and earn a yield. It has overtaken mining as the primary way to secure blockchains.
Staking consists in locking native tokens (ie SOL) to give “Validators” the right to secure a chain. Validators achieve this by proposing new blocks or attesting other validators blocks, earning a yield while doing so.
Why should you stake your assets?
Staking generates the safest and most predictable yields in the crypto space. It is the most natural yield feature in crypto as the value originates from the blockchain’s native currency inflation, making it forecastable. By staking SOL tokens, you help secure the network and earn rewards at the same time.
In other words, not staking holds back the network’s inflation as your token share is diluted among other people who are staking and accumulating new tokens.
- Put your treasury at work
- Diversify and earn
- Bring new opportunities to generate safe yields to your users
How to stake Solana with Kiln?
There is no minimum token requirement to delegate. You can start staking with as little as 0.01 SOL. To stake SOL, you’ll only need to access Kiln dashboard to stake your SOL in a few clicks. Select the Account you want to stake on and the amount of SOL and connect your wallet:
- Login to the Kiln dashboard
- Initiate Stake by selecting your Account and the amount of SOL
- Connect your wallet: Phantom, Ledger, Sollet, …Kiln supports multiple wallets as well as WalletConnect
- Confirm the staking transaction
- After the bonding period (2 epochs) you will start earning rewards
To unstake, you simply need to undelegate into one transaction, after 2 epochs you will receive your original stake back in your wallet as well as accumulated rewards from delegation.
What are the rewards associated with staking SOL?
As an incentive for helping to safeguard the network, you can earn up to 5.35% APR from each SOL validator you stake on Kiln.
Why should you stake your SOL with Kiln?
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake SOL, and to whitelabel Solana staking functionality into their offering. Our platform is API-first and enables fully automated validators, rewards, data and commission management.
We are serving thousands of businesses worldwide so that everyone can securely and seamlessly stake their coins from our dashboard, a hardware wallet, a browser wallet, a B2B custodian, a crypto exchange or just their favorite investment app. Kiln makes staking Solana easy, secure, and accessible to everyone.
- Stake SOL in 1 click
- 99% rewards guarantee
- Manage all your SOL stakes and rewards from a single dashboard
- Non-custodial, work with your existing custodians solutions e.g.Fireblocks
- SOC 2 certified and Industry leading SLAs (0 penalties recorded and 99.95% effective uptime)
Looking to stake SOL?
Get in touch with our team to discuss Prime customers advantages and unlock the full Kiln experience.
Stake Solana FAQ
What does Proof-of Stake mean?
Proof-of-Stake (PoS) is a type of consensus mechanism used to validate cryptocurrency transactions. Both Bitcoin and Ethereum, the two largest blockchains, use another type of consensus named Proof-of-Work, that requires a certain amount of computing power in order to deter frivolous or malicious uses of computing power.
What is the difference between PoS and dPoS?
Both are consensus algorithms, helping to democratize participation in securing a blockchain. DPoS is an iteration of PoS combining real-time voting with a system based on reputation to reach consensus across the blockchain. Voting power is still determined by how many tokens they have however.
When will I receive SOL rewards?
SOL rewards are issued once per epoch in your staking account, meaning SOL rewards compound. An epoch of time in Solana is approximately two days. Note that the staking yields vary for each epoch as the inflation rate and total active stake change.
Does interest compound when staking SOL?
Compound interest has been available in traditional finance for centuries. It is also available for cryptocurrencies such as SOL. The interest you earn over a specified period is added to the principal balance so that eventually you earn interest on your interest, and can grow your wealth exponentially.
What are the risks associated with staking SOL?
Solana implements a slashing mechanism for poor promotion. This includes downtime for validators and their delegators and for nodes that attempt to vote on two separate attestations at the same time. Slashed validators will add bonded tokens to the mining pool.
Slashing also occurs if Solana’s Proof-of-History generates an invalid hash.
Is there a minimum and maximum amount to stake for Solana?
You can start staking SOL with 0.01 SOL and there is no maximum stake.
Do I maintain custody of my SOL tokens? Is SOL staking non-custodial?
While you may maintain self-custody of your staked SOL (ideally using a Ledger hardware wallet), you may also choose a third-party custodian to control the withdrawal of your staked SOL (i.e. Fireblocks).
What is the lockup period to stake Solana? When can I unstake and withdraw my SOL?
The Solana protocol only allows staked tokens to finish changing state at the beginning of a new epoch. An epoch is approximately 2 days long. Unstaking takes about 48 hours until the end of the current epoch you initiate the process.
How do rewards and penalties work?
For every slot, the validator is expected to sign attestations. If submitted attestations are good, the validator receives rewards, otherwise it receives penalties. In case the validator is offline it will also receive penalties.
What is the average block time on Solana?
The average block time on Solana is ~400 milliseconds, meaning on average 3 new blocks are produced every second.
Where can I learn more about Solana?
What are the specificities of a Solana validator?
There are no strict minimum amounts of SOL required to run a validator on Solana. However, in order to participate in consensus, a vote account is required to have a rent-exempt reserve of 0.02685864 SOL. Voting also requires sending a vote transaction for each block that the validator agrees with, which can cost up to 1.1 SOL per day. From an infrastructure point of view, a vote account is defined by 3 keypairs:
- Validator identity: a SystemAccount used to pay the transaction fees of all the vote transaction fees submitted to the Vote Account
- Vote authority: used to sign each vote transaction the validator wants to submit to the cluster
- Authorized withdrawal: used to withdraw funds from a vote account